The apparel company founded by Ye, the rapper formerly known as Kanye West, was ordered to pay nearly $1 million to settle a civil lawsuit alleging false advertising over its shipping practices, officials in California announced Monday.
The judgment against Yeezy Apparel LLC and Yeezy LLC was entered Wednesday and signed by a Superior Court judge in Los Angeles County, according to a statement from the office of Los Angeles County District Attorney George Gascón.
Yeezy was alleged to have made untrue statements about its ability to ship products within a certain time frame, specifically when customers paid additional fees for expedited shipping, officials said.
The clothing and sneaker company, which was founded by Ye, is headquartered in La Palma, California.
Yeezy was ordered to pay $950,000. That includes $200,000 in civil penalties, $50,000 in restitution to the Consumer Protection Prosecution Trust Fund and $25,000 in investigative costs for fees, officials said.
The suit was filed on behalf of the people of California by the Los Angeles, Alameda, Sonoma and Napa county district attorneys’ offices.
The District Attorney’s Consumer Protection Division led the investigation, which accused Ye’s companies of unlawful business practices and false advertising by failing to ship items in a timely manner, officials said.
“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” Gascón said in the statement. “We will enforce state and federal laws governing online shopping in Los Angeles County.”
Ye’s companies cooperated in the investigation and did not admit wrongdoing, officials said.
Under the settlement, the companies are prohibited from making “untrue or misleading representations regarding a shipping timeframe or refund; adhere to laws relating to the issuance of delay notices; and [are] required to refund money to consumers who, in the future, purchase products that are not shipped in a timely fashion.”
Representatives for Ye could not immediately be reached for comment Monday.
California and federal statutes require that orders placed online be shipped within 30 days; if they cannot, companies must send consumers equivalent or superior replacement goods or give them written notices explaining the delays and offering refunds upon request, officials said.
Last month, a Los Angeles County judge approved the request of the rapper, producer and fashion designer to legally change his name from Kanye Omari West to just Ye, with no middle or last name.